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Drax Cuts Dividend Payout

David Kuo
July 31, 2012

LONDON -- The U.K.'s largest coal-fired power station, Drax (LSE: DRX.L  ) , has cut its interim dividend by 10% to 14.4 pence per share as profits fell. The company has a stated policy to distribute 50% of underlying earnings, which were down an expected 10%.

Drax, which is in the process of spending 700 million pounds to convert its dependence on coal to a reliance on biomass, said it now has the green light to turn its stated ambition of becoming a predominantly biomass-fueled generator into reality.